Crypto asset (virtual currency) exchange Binance has announced that support for the stablecoin Binance USD (BUSD) will end on December 15th. Binance announced in August that it would phase out support for the Binance USD after its publisher, Paxos, was ordered to stop issuing Binance USD in February.

Binance announced in a blog post on the 29th that users will be able to redeem Binance USD until February 2024. However, Binance will suspend withdrawals on December 31st, at which point any remaining Binance USD balances will be automatically converted to FDUSD, a stablecoin issued by FD121 Ltd.

According to CoinMarketCap data, Binance USD’s current 24-hour trading volume is just under $400 million (approximately 60 billion yen, converted at 150 yen to the dollar). In August, it was about $900 million.

Binance USD came under regulatory scrutiny in February after the New York Department of Financial Services (NYDFS) ordered Paxos to suspend issuance. Shortly after, Binance was sued by the Commodity Futures Trading Commission (CFTC) for allegedly violating federal law by offering unregistered crypto derivatives products in the United States.

Binance’s new CEO Richard Teng, who replaced founder Changpeng Zhao earlier this month as part of a $4.3 billion settlement with the United States, said in a recent blog post: It said it is committed to working with regulators to ensure that Binance complies with American law.

｜Translation and editing: Rinan Hayashi
｜Image: Danny Nelson/CoinDesk
｜Original text: Binance Will Cease Support for Its BUSD Stablecoin on Dec. 15